Providing additional flexibility to some mortgage lenders concerning the collection of consumer demographic information is the aim of a proposed amendment to Regulation B (Equal Credit Opportunity Act/ECOA) issued by the CFPB last week.
According to the agency, the proposal (issued for a 30-day comment period, which begins once the proposal is published in the Federal Register) would let mortgage lenders be more nimble while supporting the industry’s ability to use consistent forms and practices. “We believe this will help the mortgage industry as it works to adopt new application forms, including the revised Uniform Residential Loan Application,” CFPB stated in an announcement.
The bureau stated that its rules implementing ECOA (which is aimed at protecting applicants from being discriminated against by lenders) include restrictions on lenders’ ability to request certain information from consumers. The rules also include requirements on federal agencies to collect certain information from consumers, “so that we and other government agencies can help ensure lenders are following the law.”
The proposal, the bureau stated, amends those requirements to increase mortgage lenders’ flexibility in collecting certain demographic information provided by mortgage applicants.